The European Commission presented, on Tuesday 22 November, a legislative proposal to address excessive fossil gas prices by capping the settlement prices of energy derivatives traded on the Title Transfer Facility (TTF), the benchmark generally used in the EU, at €275/MWh under certain circumstances.
Scope
This cap could only apply starting from 1 January 2023 and would concern only ‘front-month’ TTF products, i.e. those with the earliest expiry date among one-month derivatives. The...